AARIA PROJECTS LTS Vs. SENIOR INTELLIGENCE OFFICER

JUDGEMENT

(1.) The present Criminal Petition is filed under Section 438 Cr.P.C. seeking to enlarge the petitioners/A-1 to A-3 on bail, in the event of their arrest, in connection with the proceedings in F.No.INV/DGGI/ HZU/GST/50/2019-20/Legal (P.F.) on the file of the Special Judge for Economic Offences, Nampally, Hyderabad.

(2.) Heard Sri Vinod Kumar Deshpandey, for Sri Parsa Anantha Nageswara Rao, learned Counsel appearing for the petitioners and Sri P.Dharmesh, learned Special Public Prosecutor, appearing for the respondent.

(3.) The case of the prosecution is that M/s. Aaria Projects Limited, represented by its Director and authorized signatory Akella Sai Kumar, situated at Flat No.1-205 and 1-206, Divya Shakthi Apartments, Greenlands, Ameerpet, Hyderabad, was registered vide GSTIN No.36AADCV7695Q1Z7 for rendering taxable supply of goods/services. M/s. Aaria Projects Limited is engaged in the activity of receiving and issuing fake invoices without supply of goods and services. M/s. Aaria Projects Limited also issued invoices without supply of goods/services involving GST to an extent of Rs.10.98 Crores and received invoices without receiving goods/services involving Input Tax Credit (ITC) to an extent of Rs.18.81 Crores, resulting in utilization of the same towards GST liability. The intelligence developed by the officers of the Directorate General of GST Intelligence, Hyderabad Zonal Unit, revealed that M/s. Aaria Projects Limited issued fake GST invoices without any physical movement of the goods/services to different companies leading to wrongful availment of the input tax credit by the companies based on the strength of such GST invoices issued by M/s. Aaria Projects Limited and it also availed input tax credit without actual receipt of goods/services which is an offence under clause (b) and (c) of sub-section (1) of Section 132 of the Central Goods and Services Act, 2017 (for short "the Act"). M/s. Aaria Projects Limited are engaged in these kinds of transactions where only invoices are issued without any actual supply of goods and services, leading to wrongful availment of input tax credit and allowing the beneficiary companies to pay the taxes from the said wrongfully availed input tax credit and routing the money by not accounting, consequently leading to huge loss to the exchequer of the Government of India. Accordingly, investigation was initiated against M/s. Aaria Projects Limited and some incriminating documents were recovered under panchanama, dated 22.08.2019. Statement of Akella Sai Kumar, who is one of the Directors and Authorised signatory of M/s. Aaria Projects Limited was recorded on 22.08.2019, wherein he admitted his role in issuing fake GST invoices leading to wrongful availment of input tax credit by various companies such as M/s. DNC Infrastructure Private Limited, M/s. Avexa Corporation Private Limited, M/s. Shresht Industries Private Limited, and M/s. Megha Engineering and Infrastructure Private Limited etc., which proves beyond doubt that he is one of the key persons behind M/s. Aaria Projects Limited. Further, M/s. Aaria Projects Limited has received fake GST invoices from M/s. Allways Town Planners Private Limited, M/s. Suave Corporation India Private Limited, etc., leading to wrongful availment of input tax credit by M/s. Aaria Projects Limited. The above act of issuing and receiving invoices by M/s. Aaria Projects Limited, without supply of goods is in violation of provisions of the Act and Rules made thereunder leading to wrongful availment and utilization of input tax credit on the basis of such invoices/bills issued without supply of goods or services is an offence under clause (b) and (c) of sub-section (1) of Section 132 of the Act. It is evident from the scrutiny of the documents that M/s. Aaria Projects Limited, has passed on GST credit to the tune of Rs.10.98 Crores to various entities/GST Registrants wrongfully and also wrongfully availed GST credit to the tune of Rs.8.81 Crores.